Goals Soccer Centres is on track to deliver a nine per cent rise in annual revenue but warns the impact of VAT added to block bookings will lead to a two per cent drop in like-for-like sales.

Revenues for the year to December 31 are expected to be s30.3 million against s27.8 million the previous year.

The five-a-side football firm is challenging the ruling that businesses which operate sports leagues should be subject to the full 20 per cent rate of VAT.

Last April, Goals warned the change in guidance from Her Majesty's Revenue and Customs could affect revenues and profits by around s650,000.

Previously operators believed their business activity was classified as mainly being pitch rental so they were exempt under sections of the VAT Act from 1994.

However HMRC sent out a business briefing early last year indicating all income relating to commercially operated sports leagues should be standard rated for VAT purposes.

In a 2011 trading update, Goals - which operates 42 centres across the UK and one in Los Angeles in the US -said like-for-like sales, excluding revenues from new centres, rose by one per cent for the year.

However, the impact of the VAT change on block bookings by teams in order to fulfil their league fixtures,has resulted in overall like-for-like sales being down two percent the group said.

Goals opened four new centres in 2011, in Sunderland, Liverpool South, Norwich and Hull.

The group's first modular built centre, being built in Chester, is expected to open in March of this year,and is expected to complete within a target budget of s1.5 million.

This compares with historic build costs of new centres averaging s2.3 million. The modular system may also shorten construction from 22 weeks to 14.

However, the group said it plans to postpone opening more new centres this year to focus on strong cash generation and to take time to evaluate the new modular build design.

Goals said it plans to open more centres in 2013, "subject to a satisfactory evaluation and prevailing economic conditions".

The company has agreed a new four year banking agreement with Bank of Scotland totalling s56 million,comprising a revolving credit facility of s38 million, a term loan of s16 million and an overdraft facility of s2 million.

Goals said in a market statement: "Whilst 2011 was one of the most challenging years the consumer has faced, it looks likely that 2012 will continue in much the same vein.

"However, Goals operates in a resilient market place with a favourable price point and our market leading position provides us with the necessary scale to cope with the challenges ahead.